Q. Am I supposed to be taxed on tuition reimbursement over $5250?
A. Yes.
Q. Is there a way that I'm "paid back" for being taxed on this?
A. Yes, you may use the $5546 to calculate (claim) tuition credits, $3352 (8602 - 5250 = 3352) on your 2023 and $2194 on your 2022 return. You can do that because that part of the reimbursement was not tax free. That is, you paid $5546 of tuition with YOUR after tax money.
